UBVRI CCD photometry in a wide field around two young open clusters, NGC 663 and 654, has been carried out. Hα and polarimetric observations for the cluster NGC 654 have also been obtained. We use the photometric data to construct colour-colour and colour-magnitude diagrams, from which we can investigate the reddening, age, mass and evolutionary states of the stellar contents of the these clusters. The reddening across the cluster regions is found to be variable. There is evidence for anomalous reddening law in both clusters; however, more infrared and polarimetric data are needed to conclude about the reddening law. Both clusters are situated at about a distance of 2.4 kpc. Star formation in both clusters is found to be a continuous process. In the case of NGC 663, star formation seems to have taken place sequentially, in the sense that formation of low-mass stars precedes the formation of most massive stars. Whereas, in the case of NGC 654, formation of low-mass stars did not cease after the formation of most massive stars in the cluster.